U.S. patent number 7,752,124 [Application Number 10/249,784] was granted by the patent office on 2010-07-06 for system and method for automated loan compliance assessment.
This patent grant is currently assigned to Mavent Holdings, Inc.. Invention is credited to Timothy T. Green, Albert V. Ogrodski, Jr., Frank D. Tuttle.
United States Patent |
7,752,124 |
Green , et al. |
July 6, 2010 |
System and method for automated loan compliance assessment
Abstract
An automated system and method for reviewing and assessing
compliance with legal compliance requirements for loan
applications. Loan application data is extracted from client loan
origination systems and transmitted as a loan information file over
a secure communication network to an automated compliance
assessment system server where the loan information file is audited
for compliance with Federal, state, and local legal compliance
requirements. The loan information file is reviewed for legal
compliance requirements imposed by Federal, State, and local
jurisdictions, as well as licensing requirements that the client
loan company and related personnel must satisfy. The results of the
audit process are transmitted over a secure communication network
to the client loan company, with areas of noncompliance indicated.
The automated compliance assessment system server also stores rules
data derived from legal compliance requirements, license data
derived from regulatory requirements, system setup data and
supplemental system application data.
Inventors: |
Green; Timothy T. (Ladera
Ranch, CA), Ogrodski, Jr.; Albert V. (Anaheim, CA),
Tuttle; Frank D. (Irvine, CA) |
Assignee: |
Mavent Holdings, Inc. (Irvine,
CA)
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Family
ID: |
46282317 |
Appl.
No.: |
10/249,784 |
Filed: |
May 7, 2003 |
Prior Publication Data
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Document
Identifier |
Publication Date |
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US 20030229581 A1 |
Dec 11, 2003 |
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Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
Issue Date |
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09518837 |
Aug 12, 2008 |
7412417 |
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Current U.S.
Class: |
705/38;
705/30 |
Current CPC
Class: |
G06Q
40/12 (20131203); G06Q 40/025 (20130101); G06Q
10/10 (20130101) |
Current International
Class: |
G06Q
40/00 (20060101) |
Field of
Search: |
;705/1,10-44 |
References Cited
[Referenced By]
U.S. Patent Documents
Foreign Patent Documents
Other References
Britt, Phil, "A Look at Compliance Software", Americaa's Community
Banker, Sep. 7, 9, 16, 1998, Dialog file 148, Accession No.
11583469. cited by examiner .
Purcell "Compliance and fee revenue made easy", Bank Systems &
Technology, New York, vol. 31, Issue 8, p. 41, Aug. 1994. cited by
examiner .
Muolo, Paul, "Merging on the Information Highway", USBanker, New
York, Mar. 1995, vol. 105, Issue 3, p. 79. cited by examiner .
PR NewsWire, "InterFirst Chooses Stewart Online for all Mortgage
Loan Documentation", PR NewsWire, New York, Jul. 20, 1998, p. 1.
cited by examiner.
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Primary Examiner: Poinvil; Frantzy
Attorney, Agent or Firm: Taylor Russell & Russell,
PC
Parent Case Text
CROSS REFERENCE TO RELATED APPLICATIONS
This application is a continuation-in-part of application Ser. No.
09/518,837 filed Mar. 3, 2000, now U.S. Pat. No. 7,412,417, issued
on Aug. 12, 2008.
Claims
The invention claimed is:
1. A computer-implemented method for automated loan compliance
assessment, comprising the computer-implemented steps of:
extracting loan data from a client loan origination system;
converting and formatting the extracted loan data into
compliance-based rule data elements for entry into
computer-implemented compliance rules; electrically assessing
compliance of the formatted loan data with legal compliance
requirements by a compliance assessment server for applying the
formatted loan data to the computer-implemented compliance rules
comprising computer instructions representing mathematical
equations and logical relationships to form audit result data; and
storing the audit result data designating rule compliance and rule
noncompliance.
2. The method of claim 1, further comprising initiating the step of
extracting by selecting from the group consisting of an automatic
service request and a manual service request.
3. The method of claim 1, wherein the step of converting and
formatting comprises converting and formatting the extracted loan
data into a file readable by the compliance assessment server.
4. The method of claim 1, further comprising the steps of:
transmitting the formatted loan data over a secure communication
network to the compliance assessment server; and transmitting the
audit result data over the secure communication network to the
client loan origination system.
5. The method of claim 4, wherein the secure communication network
is selected from the group consisting of a satellite communication
network, a telephone communication network, a microwave
transmission network, a radio communication network, a wireless
telephone communication network, a cable network, and the
Internet.
6. The method of claim 1, wherein the step of storing the audit
result data comprises storing the audit result data in a results
repository of the compliance assessment server and in a loan
origination database of the loan origination system.
7. The method of claim 1, further comprising the step of displaying
the audit result data on a user interface selected from the group
consisting of a client loan origination system user interface, a
customer user interface and a compliance assessment server user
interface.
8. The method of claim 1, wherein the steps of extracting and
converting comprises the steps of: initiating manual and automatic
audit assessment requests using a loan origination system user
interface; receiving the audit assessment request and extracting a
loan data file from a loan origination system database; converting
and formatting the loan data file as an Extensible Markup Language
XML file; sending the formatted loan data file to a server
processor for loan compliance assessment; receiving an audit
results file from the server processor; parsing the audit results
file and storing the audit results file in the loan origination
system database; and displaying the parsed audit results file on
the loan origination system user interface.
9. The method of claim 1, wherein the step of assessing compliance
comprises the steps of: receiving the formatted loan data in an
input queue as a loan data file schema from a client side
interface; verifying the formatted loan data file schema and
customer passwords; validating a compliance review request;
conducting a rules assessment of the loan data file schema against
applicable statutory rules stored in a rules repository; conducting
a license assessment of the loan data file against applicable
license requirements stored in a license repository; conducting an
assessment of the loan data file against industry standards and
guidelines stored in a supplemental data repository; appending the
assessment results to the loan data file to form an audit result
file; storing the audit result file in a results repository; and
placing the audit result file in an output queue for sending to the
client side interface.
10. The method of claim 1, further comprising the steps of:
creating license requirements for storing in a license repository;
and creating statutory compliance rules requirements for storing in
a rules repository.
11. The method of claim 10, wherein the step of creating license
requirements comprises the steps of; extracting licensing data
compilations of applicable licenses and licensees from regulatory
agencies; converting the licensing data compilations into license
XML files; and storing the indexed and referenced regulations,
licensee data, license data and license XML files in the license
repository.
12. The method of claim 10, wherein the step of creating statutory
compliance rules requirements comprises the steps of: extracting
legal interpretations from documented sources of legal compliance;
creating rules from the legal interpretations expressed in plain
English that reflect compliance requirements; converting the
English rules into computer system syntax rules comprising computer
instructions representing mathematical equations and logical
relationships; and storing the indexed and referenced documented
sources of legal compliance, legal interpretations, English rules
and system compliance rules in a rules repository.
13. A computer-readable medium containing instructions for
controlling a computer system to implement the method of claim
1.
14. A computer-implemented method for automated loan compliance
assessment, comprising the computer-implemented steps of:
extracting loan data from a client loan origination system;
converting and formatting the extracted loan data into
compliance-based rule data elements for entry into
computer-implemented compliance rules; transmitting the formatted
loan data to a compliance assessment server for assessing
compliance of the formatted loan data with legal compliance
requirements by applying the formatted loan data to the
computer-implemented compliance rules comprising computer
instructions representing mathematical equations and logical
relationships to form an audit result data file; receiving the
audit result data file from the compliance assessment server; and
storing and displaying the audit result data file designating rule
compliance and rule noncompliance.
15. A computer-readable medium containing instructions for
controlling a computer system to implement the method of claim
14.
16. A computer-implemented method for automated loan compliance
assessment, comprising the computer-implemented steps of: receiving
an extracted loan data file from a client loan origination system;
converting and formatting the extracted loan data file into
compliance-based rule data elements for entry into
computer-implemented compliance rules; assessing compliance of the
formatted loan data file with legal compliance requirements by a
compliance assessment server by applying the formatted loan data to
the computer-implemented compliance rules comprising computer
instructions representing mathematical equations and logical
relationships to form audit result data; storing the audit result
data file designating rule compliance and rule noncompliance; and
sending the audit result data file to the client loan origination
system.
17. A computer-readable medium containing instructions for
controlling a computer system to implement the method of claim
16.
18. A computer system for automated loan compliance assessment,
comprising: means for extracting loan data from a client loan
origination system; means for converting and formatting the
extracted loan data into compliance-based rule data elements for
entry into computer-implemented compliance rules; means for
assessing compliance of the formatted loan data with legal
compliance requirements by a compliance assessment server by
applying the formatted loan data to the computer-implemented
compliance rules comprising computer instructions representing
mathematical equations and logical relationships to form audit
result data; and database means for storing the audit result data
designating rule compliance and rule noncompliance.
19. The system of claim 18, wherein the means for extracting loan
data and means for converting and formatting the extracted loan
data comprises a client side interface.
20. The system of claim 19, wherein the client side interface
comprises: means for initiating manual and automatic audit
assessment requests using a loan origination system user interface;
means for receiving the audit assessment request and extracting a
loan data file from a loan origination system database; means for
converting and formatting the loan data file as an XML file; means
for sending the formatted loan data file to a server processor for
loan compliance assessment; means for receiving an audit results
file from the server processor; means for parsing the audit results
file and storing the audit results file in the loan origination
system database; and a loan origination system user interface means
for displaying the parsed audit results file.
21. The system of claim 20, wherein the means for sending the
formatted loan data file and the means for receiving an audit
results file is a secure communication network selected from the
group consisting of a satellite communication network, a telephone
communication network, a microwave transmission network, a radio
communication network, a wireless telephone communication network,
a cable network, and the Internet.
22. The system of claim 18, wherein the means for assessing
compliance comprises a server processor.
23. The system of claim 22, wherein the server processor comprises:
means for receiving the formatted loan data in an input queue as a
loan data file from a client side interface; means for verifying
the formatted loan data file schema and customer passwords; means
for validating a compliance review request; means for conducting a
rules assessment of the loan data file against applicable statutory
rules stored in a rules repository; means for conducting a license
assessment of the loan data file against applicable license
requirements stored in a license repository; means for conducting a
review of the loan data file against industry standards and
guidelines stored in a supplemental data repository for adding
missing data; means for appending the assessment results to the
loan data file to form an audit result file; results repository
means for storing the audit result file; and means for placing the
audit result file in an output queue for sending to the client side
interface.
24. The system of claim 23, wherein the means for receiving the
formatted loan data file and the means for sending the audit
results file is a secure communication network selected from the
group consisting of a satellite communication network, a telephone
communication network, a microwave transmission network, a radio
communication network, a wireless telephone communication network,
a cable network, and the Internet.
25. The system of claim 23, wherein the means for conducting a
rules assessment, a license assessment, and an industry standards
and guidelines assessment comprises an expert system.
26. The system of claim 23, further comprising: means for creating
license requirements comprising computer instructions representing
mathematical equations and logical relationships for storing in a
license repository; and means for creating statutory compliance
rules requirements comprising computer instructions representing
mathematical equations and logical relationships for storing in a
rules repository.
27. The system of claim 26, wherein the means for creating license
requirements is a license data processor comprising: means for
extracting licensing data compilations of applicable licenses and
licensees from regulatory agencies; means for converting the
licensing data compilations into license XML files; and license
repository means for storing indexed and referenced regulations,
licensee data, license data and license XML files.
28. The system of claim 26, wherein the means for creating
statutory rules requirements is a legal rule builder comprising:
means for extracting legal interpretations from documented sources
of legal compliance; means for creating rules from the legal
interpretations expressed in plain English that reflect compliance
requirements; means for converting the English rules into computer
system syntax compliance rules comprising computer instructions
representing mathematical equations and logical relationships; and
rules repository means for storing the indexed and referenced
documented sources of legal compliance, legal interpretations,
English rules and system compliance rules.
29. A computer system for automated loan compliance assessment,
comprising: means for extracting loan data from a client loan
origination system; means for converting and formatting the
extracted loan data into compliance-based rule data elements for
entry into computer-implemented compliance rules; means for
transmitting the formatted loan data over a secure communication
network to the compliance assessment server for assessing
compliance of the formatted loan data with legal compliance
requirements by applying the formatted loan data to the
computer-implemented compliance rules comprising computer
instructions representing mathematical equations and logical
relationships to form an audit result data file; means for
receiving the audit result data file over the secure communication
network from the client loan origination system; and means for
storing and displaying the audit result data file designating rule
compliance and rule noncompliance.
30. A computer system for automated loan compliance assessment,
comprising: means for receiving an extracted loan data file from a
client loan origination system; means for converting and formatting
the extracted loan data file into compliance-based rule data
elements for entry into computer-implemented compliance rules;
means for assessing compliance of the formatted loan data file with
legal compliance requirements by a compliance assessment server by
applying the formatted loan data to the computer-implemented
compliance rules comprising computer instructions representing
mathematical equations and logical relationships to form audit
result data; means for storing the audit result data file; and
means for sending the audit result data file designating rule
compliance and rule noncompliance to the client loan origination
system.
31. A computer implemented method for displaying automated loan
compliance assessment information, comprising the
computer-implemented steps of: displaying a tool bar having
selectable tool bar title buttons, at least one of the selectable
tool bar title buttons for selecting an audit search; positioning a
cursor over the audit search tool bar title button for displaying a
drop-down menu having selections of audit search type, at least one
of the selections for searching by loan number; designating the
audit search type by selecting the search by loan number selection
for displaying a loan number window and a customer selection
window; receiving a loan number into the loan number window and a
customer selection in the customer selection window; and displaying
automated loan compliance assessment information designating rule
compliance and rule noncompliance for the selected loan number and
customer.
32. The method of claim 31, wherein: the positioning step comprises
positioning a cursor over the audit search tool bar title button
for displaying a drop-down menu having selections of audit search
type, at least one of the selections for advanced searching; the
designating step comprises designating the audit search type by
selecting the advanced search selection for displaying a loan
number window, a branch selection window, an application date
window, a submit date window, a loan status window, an audit status
selection window and a customer selection window; the receiving
step comprises entering data into one of the displayed; and the
displaying automated loan step comprises viewing a displayed list
of audits that match the data entered into the selected displayed
window.
33. The method of claim 31, further comprising: displaying a tool
bar having selectable tool bar title buttons, at least one of the
selectable tool bar title buttons for selecting a jurisdiction
display; positioning a cursor over the jurisdiction tool bar title
button and selecting the jurisdiction tool bar title button; and
displaying a list of jurisdictions where automated loan compliance
assessment may be conducted.
34. The method of claim 31, further comprising: displaying a tool
bar having selectable tool bar title buttons, at least one of the
selectable tool bar title buttons for selecting an agency display;
positioning a cursor over the agency tool bar title button and
selecting the agency tool bar title button; and displaying a list
of jurisdictions and associated agencies for regulating loan
compliance.
35. The method of claim 31, further comprising: displaying a tool
bar having selectable tool bar title buttons, at least one of the
selectable tool bar title buttons for selecting an act display;
positioning a cursor over the act tool bar title button and
selecting the act tool bar title button; and displaying a list of
jurisdictions and associated acts for regulating loan
compliance.
36. The method of claim 31, further comprising: displaying a tool
bar having selectable tool bar title buttons, at least one of the
selectable tool bar title buttons for selecting a license display;
positioning a cursor over the license tool bar title button and
selecting the license tool bar title button; and displaying a list
of jurisdictions and associated licenses required by personnel and
entities engaged in loan processing activities.
37. The method of claim 31, further comprising: displaying a tool
bar having selectable tool bar title buttons, at least one of the
selectable tool bar title buttons for selecting a tag display;
positioning a cursor over the tag tool bar title button and
selecting the tag tool bar title button; and displaying a list of
tag names, tag descriptions and tag types used in loan compliance
assessment.
38. The method of claim 31, further comprising: displaying a tool
bar having selectable tool bar title buttons, at least one of the
selectable tool bar title buttons for selecting a rule display;
positioning a cursor over the rule tool bar title button and
selecting the rule tool bar title button; and displaying a list of
rules used in loan compliance assessment.
39. The method of claim 31, further comprising: displaying a tool
bar having selectable tool bar title buttons, at least one of the
selectable tool bar title buttons for selecting a rule header
display; positioning a cursor over the rule header tool bar title
button and selecting the rule header tool bar title button; and
displaying a list of rule headers used in loan compliance
assessment.
40. The method of claim 31, further comprising: displaying a tool
bar having selectable tool bar title buttons, at least one of the
selectable tool bar title buttons for selecting a reports display;
positioning a cursor over the reports tool bar title button for
displaying a drop-down menu having a selection of report types, the
selection of report types including broker license exception,
covered loan exception, daily exception, error exception, fee
exception, geocode exception, high cost exception, Home Mortgage
Disclosure Act HMDA exception, lender license exception, SDS
exception, and state rule exception; designating the report type to
be displayed by selecting a report type for displaying a date
window and a customer selection window; receiving a date into the
date window and a customer designation in the customer selection
window; and displaying the designated report type.
41. The method of claim 31, further comprising: displaying a tool
bar having selectable tool bar title buttons, at least one of the
selectable tool bar title buttons for selecting an administration
display; positioning a cursor over the administration tool bar
title button for displaying a drop-down menu having selections of
user setup and user role setup; designating a user setup to be
displayed by selecting the user setup selection; and displaying a
designated user setup comprising a displayed list of user full
names, user login names, user company names, user roles, and user
status.
42. The method of claim 31, further comprising: displaying a tool
bar having selectable tool bar title buttons, at least one of the
selectable tool bar title buttons for selecting an administration
display; positioning a cursor over the administration tool bar
title button for displaying a drop-down menu having selections of
user setup and user role setup; designating a user role setup to be
displayed by selecting the role setup selection; and displaying a
designated user role setup comprising a displayed list of user role
names and associated descriptions.
Description
BACKGROUND OF INVENTION
The present invention relates generally to systems and methods for
lending transactions involving loan initiation. More particularly,
the invention is a system and method for ensuring that loans
provided by lending institutions comply with the most current
federal, state and local regulations. This is accomplished by
extracting data from a lending institution's loan origination
system and forwarding the data over a secure communication
connection to a server located at a service provider's site. The
server archives the lending institution's data and processes the
data to assess whether every mortgage loan originated by the
institution complies with all federal, state and local regulations
applicable to each loan initiation.
As the standard of living for more people has increased over the
last decade, many have sought to own their own home. This has
brought an increase in the number of home mortgage loan
applications. There are tens of millions of mortgage loan
applications processed every year resulting in over a trillion
dollars in new residential real estate loans. It is estimated that
between five and six percent of the principal amount of these loans
was paid out in fees, charges and expenses to consummate these
transactions, amounting to between $60 and $72 billion. To protect
consumers involved in these credit transactions, the Federal
government as well as state and local municipalities have enacted
laws and regulations that impose requirements on institutions and
personnel involved in the business of originating and closing
mortgage loans. These laws and regulations establish transactional
standards and disclosure requirements that are enforced by state
and Federal agencies. As new laws, regulations, licenses and rules
are added over time, mortgage loan applications have become more
varied, complex and prone to error, resulting in an increase in
exposure to non-compliance liabilities of the institutions that
process these applications. With the growing complexity of the
mortgage loan industry, consumers have sometimes been subjected to
compliance errors, overcharges and careless lending practices.
Federal and state regulators are conducting increasingly aggressive
policing campaigns to ensure compliance by the mortgage industry.
These efforts have significantly increased the costs for
non-compliance in terms of monetary penalties and legal expenses,
as well as in terms of tarnished reputations to the lending
institutions. Because of the substantial growth in Internet and
multi-state lending activities, the potential for serious
compliance violations is likely to increase along with a
corresponding increase in compliance scrutiny and enforcement
activities by Federal and state regulatory agencies. The mortgage
industry, including mortgage-backed securities investors, face the
prospect of significant losses if they are forced to refund fees
and charges, repurchase noncompliant loans, and pay civil and
criminal penalties. To counter these potential losses, the industry
will incur increased expenses associated with compliance audits and
compliance policies, procedures and reporting.
In order to overcome these problems and to satisfy regulatory
compliance requirements, institutions offering mortgage loans have
attempted to audit loan compliance on a manual basis. This approach
results in a tedious, time-consuming and costly process that allows
only a small statistical sample of loan applications to be examined
for compliance with requirements. The results of this process are
also oftentimes inconsistent due to factors such as varying degrees
of understanding, differences in interpretation and processing
errors. With greater competition in the mortgage loan market, there
is also a strong need to reduce the cost of regulatory compliance
as well as to reduce penalties for failure to meet compliance
requirements. Some mortgage companies have attempted to employ risk
management techniques, which have proved inadequate as a solution
to the compliance and related liability problems.
While the home mortgage loan industry is probably more regulated
than other industries, the compliance difficulties are also
encountered in many other areas. Other applications where automated
compliance assessment would reduce costs and speed transaction
processing include automobile and other consumer loans.
SUMMARY OF INVENTION
The present invention provides an automated system and method for
ensuring that all data contained in the loan origination system for
every loan application of a subscribing loan institution is in
compliance with laws, regulations and other requirements applicable
to each particular loan initiation and the location of the
property. It is an expert system that provides auditing assessment
capabilities for evaluating compliance of real estate and other
loans with multi-jurisdictional regulatory compliance requirements.
The invention provides compliance assurance for the borrowing
public, the lending industry, Federal and state regulatory
agencies, and the mortgage securities investment community. The
invention comprises an automated expert system that extracts data
from a lender's loan origination system and verifies that all such
data for every loan adheres to the most current Federal, state,
local and other requirements, including the following:
Truth-In-Lending Act (TIL) Requirements Real Estate Settlement
Procedures Act (RESPA) Home Mortgage Disclosure Act (HMDA) Office
of Foreign Asset Control (OFAC) Home Ownership and Equity
Protection Act (HOEPA) Originator and Lender Licensing Requirements
State Rules, Loan Fees and APR Calculations Requirements State and
Local High Cost Calculations Requirements Pedatory Lending Rules
and Regulations
Any areas of noncompliance are identified as exceptions and
presented to the lender for corrective action.
Although the invention may be used after funding of a loan is
completed, it is designed to review loan file data prior to closing
the loan to ensure that the data is free of clerical mistakes,
calculation errors, interest/usury rate violations, finance charge
restrictions, and prohibited practices, including but not limited
to "high-cost" loan restrictions, loan term and amortization
restrictions, restricted/prohibited charges and fees, late charge
limitations, and prepayment penalty limitations that may lead to
violations of applicable federal, state and local requirements. A
review immediately prior to loan funding represents the last
reasonable opportunity to detect errors and mistakes in a loan file
before the loan creates potential liabilities for the originators,
lenders and investors. The invention addresses enterprise level
risk assessment in real time.
The data that is assessed by the present invention is contained
within a loan origination system (LOS) maintained by a lending
institution. While "loan origination system" is a term of art used
in the loan origination industry, when used in the context of the
present invention, "loan origination system" or LOS is to be
construed more broadly than the term of art may imply, to include
data from any other system that may be assessed by the present
invention.
The invention operates by extracting data from a lending
institution's loan origination system and forwarding the data over
a secure communication connection to a compliance assessment
server. The server archives the lending institution's data and
processes the data to verify that every loan initiated by the
institution complies with all applicable requirements. The server
contains a rule-based expert system for processing the data and a
database containing rules derived from federal, state and local
regulations, licensing authorities and lending institution
requirements, as well as supplemental customer, investor and
industry data. The lending institution is notified and kept abreast
of the compliance status of each loan application file. The current
invention also periodically reviews the loan origination data up to
the time the loan has been funded, assessing whether any changes or
additions do not impact compliance with requirements. When
instances of noncompliance are found, the invention notifies the
lending institution and recommends corrective action, preventing
noncompliant loans from being funded until corrective action is
taken. A structured process is provided for adding and updating
rules in the server database, as new compliance requirements are
promulgated.
In an embodiment of the present invention, a computer implemented
method for automated loan compliance assessment comprises the steps
of extracting loan data from a client loan origination system,
converting and formatting the extracted loan data, assessing
compliance of the formatted loan data with legal compliance
requirements by a compliance assessment server to form audit result
data, and storing the audit result data. The method may further
comprise initiating the step of extracting by means selected from
the group consisting of an automatic service request and a manual
service request. The step of converting and formatting may comprise
converting and formatting the extracted loan data into a file
readable by the compliance assessment server. The method may
further comprise the steps of transmitting the formatted loan data
over a secure communication network to the compliance assessment
server, and transmitting the audit result data over the secure
communication network to the client loan origination system. The
secure communication network may be selected from the group
consisting of a satellite communication network, a telephone
communication network, a microwave transmission network, a radio
communication network, a wireless telephone communication network,
a cable network, and the Internet. The step of storing the audit
result data comprises storing the audit result data in a results
repository of the compliance assessment server and in a loan
origination database of the loan origination system. The method may
further comprise the step of displaying the audit result data on a
user interface selected from the group consisting of a client loan
origination system user interface, a customer user interface and a
compliance assessment server user interface. The steps of
extracting and converting may comprise the steps of initiating
manual and automatic audit assessment requests using a loan
origination system user interface, receiving the audit assessment
request and extracting a loan data file from a loan origination
system database, converting and formatting the loan data file as an
Extensible Markup Language XML file, sending the formatted loan
data file to a server processor for loan compliance assessment,
receiving an audit results file from the server processor, parsing
the audit results file and storing the audit results file in the
loan origination system database, and displaying the parsed audit
results file on the loan origination system user interface. The
step of assessing compliance may comprise the steps of receiving
the formatted loan data in an input queue as a loan data file from
a client side interface, verifying the formatted loan data file
schema and customer passwords, validating the compliance review
request, conducting a rules assessment of the loan data file
against applicable statutory rules stored in a rules repository,
conducting a license assessment of the loan data file against
applicable license requirements stored in a license repository,
conducting an assessment of the loan data file against industry
standards and guidelines stored in a supplemental data repository,
appending the assessment results to the loan data file to form an
audit result file, storing the audit result file in a results
repository, and placing the audit result file in an output queue
for sending to the client side interface. The method may further
comprise the steps of creating license requirements for storing in
a license repository, and creating statutory rules requirements for
storing in a rules repository. The step of creating statutory rules
requirements may comprise the steps of extracting legal
interpretations from documented sources of legal compliance,
creating rules from the legal interpretations expressed in plain
English that reflect compliance requirements, converting the
English rules into computer system syntax rules, and storing the
indexed and referenced sources of legal compliance requirements,
legal interpretations, English rules and system rules in a rules
repository. A computer-readable medium may contain instructions for
controlling a computer system to implement the method described
above.
Another embodiment of the present invention is a computer
implemented method for automated loan compliance assessment that
comprises the steps of extracting loan data from a client loan
origination system, converting and formatting the extracted loan
data, transmitting the formatted loan data to a compliance
assessment server for assessing compliance of the formatted loan
data with legal compliance requirements to form an audit result
data file, receiving the audit result data file from the compliance
assessment server, and storing and displaying the audit result data
file. A computer-readable medium may contain instructions for
controlling a computer system to implement the method described
above.
Yet another embodiment of the present invention is a computer
implemented method for automated loan compliance assessment that
comprises the steps of receiving an extracted loan data file from a
client loan origination system, converting and formatting the
extracted loan data file, assessing compliance of the formatted
loan data file with legal compliance requirements by a compliance
assessment server to form audit result data, storing the audit
result data file, and sending the audit result data file to the
client loan origination system. A computer-readable medium may
contain instructions for controlling a computer system to implement
the method described above.
A further embodiment of the present invention is a computer system
for automated loan compliance assessment that comprises means for
extracting loan data from a client loan origination system, means
for converting and formatting the extracted loan data, means for
assessing compliance of the formatted loan data with legal
compliance requirements by a compliance assessment server to form
audit result data, and database means for storing the audit result
data. The means for extracting loan data and means for converting
and formatting the extracted loan data may comprise a client side
interface. The client side interface may comprise means for
initiating manual and automatic audit assessment requests using a
loan origination system user interface, means for receiving the
audit assessment request and extracting a loan data file from a
loan origination system database, means for converting and
formatting the loan data file as an XML file, means for sending the
formatted loan data file to a server processor for loan compliance
assessment, means for receiving an audit results file from the
server processor, means for parsing the audit results file and
storing the audit results file in the loan origination system
database, and a loan origination system user interface means for
displaying the parsed audit results file. The means for sending the
formatted loan data file and the means for receiving an audit
results file may be a secure communication network selected from
the group consisting of a satellite communication network, a
telephone communication network, a microwave transmission network,
a radio communication network, a wireless telephone communication
network, a cable network, and the Internet. The means for assessing
compliance may comprise a server processor. The server processor
may comprise means for receiving the formatted loan data in an
input queue as a loan data file from a client side interface, means
for verifying the formatted loan data file schema and customer
passwords, means for validating the compliance review request,
means for conducting a rules assessment of the loan data file
against applicable statutory rules stored in a rules repository,
means for conducting a license assessment of the loan data file
against applicable license requirements stored in a license
repository, means for conducting a review of the loan data file
against industry standards and guidelines stored in a supplemental
data repository for adding missing data, means for appending the
assessment results to the loan data file to form an audit result
file, results repository means for storing the audit result file,
and means for placing the audit result file in an output queue for
sending to the client side interface. The means for receiving the
formatted loan data file and the means for sending the audit
results file may be a secure communication network selected from
the group consisting of a satellite communication network, a
telephone communication network, a microwave transmission network,
a radio communication network, a wireless telephone communication
network, a cable network, and the Internet. The means for
conducting a rules assessment, a license assessment, and an
industry standards and guidelines assessment may comprise an expert
system. The system may further comprise means for creating license
requirements for storing in a license repository, and means for
creating statutory rules requirements for storing in a rules
repository. The means for creating license requirements may be a
license data processor comprising means for extracting licensing
data compilations of applicable licenses and licensees from
regulatory agencies, means for converting the licensing data
compilations into license XML files, and license repository means
for storing the indexed and referenced regulations, licensee data,
license data and license XML files. The means for creating
statutory rules requirements may be a legal rule builder comprising
means for extracting legal interpretations from statutes,
regulations, ordinances, administrative codes and guides, official
interpretations, court decisions, and other sources of legal
compliance requirements, means for creating rules from the legal
interpretations expressed in plain English that reflect compliance
requirements, means for converting the English rules into computer
system syntax rules, and rules repository means for storing the
indexed and referenced sources of legal compliance requirements,
legal interpretations, English rules and system rules.
Another embodiment of the present invention is a computer system
for automated loan compliance assessment that comprises means for
extracting loan data from a client loan origination system, means
for converting and formatting the extracted loan data, means for
transmitting the formatted loan data over a secure communication
network to the compliance assessment server for assessing
compliance of the formatted loan data with legal compliance
requirements to form an audit result data file, means for receiving
the audit result data file over the secure communication network
from the client loan origination system, and means for storing and
displaying the audit result data file.
And yet another embodiment of the present invention is a computer
system for automated loan compliance assessment that comprises
means for receiving an extracted loan data file from a client loan
origination system, means for converting and formatting the
extracted loan data file, means for assessing compliance of the
formatted loan data file with legal compliance requirements by a
compliance assessment server to form audit result data, means for
storing the audit result data file, and means for sending the audit
result data file to the client loan origination system.
An additional embodiment of the present invention is a computer
implemented method for displaying automated loan compliance
assessment information that comprises the steps of displaying a
tool bar having selectable tool bar title buttons, at least one of
the selectable tool bar title buttons for selecting an audit
search, positioning a cursor over the audit search tool bar title
button for displaying a drop-down menu having selections of audit
search type, at least one of the selections for searching by loan
number, designating the audit search type by selecting the search
by loan number selection for displaying a loan number window and a
customer selection window, entering a loan number into the loan
number window and selecting a customer in the customer selection
window, and viewing displayed automated loan compliance assessment
information for the selected loan number and customer. The
positioning step may comprise positioning a cursor over the audit
search tool bar title button for displaying a drop-down menu having
selections of audit search type, at least one of the selections for
advanced searching, the designating step may comprise designating
the audit search type by selecting the advanced search selection
for displaying a loan number window, a branch selection window, an
application date window, a submit date window, a loan status
window, an audit status selection window and a customer selection
window, the entering step may comprise entering data into one of
the displayed, and the viewing step may comprise viewing a
displayed list of audits that match the data entered into the
selected displayed window. The method may further comprise
displaying a tool bar having selectable tool bar title buttons, at
least one of the selectable tool bar title buttons for selecting a
jurisdiction display, positioning a cursor over the jurisdiction
tool bar title button and selecting the jurisdiction tool bar title
button, and viewing a displayed list of jurisdictions where
automated loan compliance assessment may be conducted. The method
may further comprise displaying a tool bar having selectable tool
bar title buttons, at least one of the selectable tool bar title
buttons for selecting an agency display, positioning a cursor over
the agency tool bar title button and selecting the agency tool bar
title button, and viewing a displayed list of jurisdictions and
associated agencies for regulating loan compliance. The method may
further comprise displaying a tool bar having selectable tool bar
title buttons, at least one of the selectable tool bar title
buttons for selecting an act display, positioning a cursor over the
act tool bar title button and selecting the act tool bar title
button, and viewing a displayed list of jurisdictions and
associated acts for regulating loan compliance. The method may
further comprise displaying a tool bar having selectable tool bar
title buttons, at least one of the selectable tool bar title
buttons for selecting a license display, positioning a cursor over
the license tool bar title button and selecting the license tool
bar title button, and viewing a displayed list of jurisdictions and
associated licenses required by personnel and entities engaged in
loan processing activities. The method may further comprise
displaying a tool bar having selectable tool bar title buttons, at
least one of the selectable tool bar title buttons for selecting a
tag display, positioning a cursor over the tag tool bar title
button and selecting the tag tool bar title button, and viewing a
displayed list of tag names, tag descriptions and tag types used in
loan compliance assessment. The method may further comprise
displaying a tool bar having selectable tool bar title buttons, at
least one of the selectable tool bar title buttons for selecting a
rule display, positioning a cursor over the rule tool bar title
button and selecting the rule tool bar title button, and viewing a
displayed list of rules used in loan compliance assessment. The
method may further comprise displaying a tool bar having selectable
tool bar title buttons, at least one of the selectable tool bar
title buttons for selecting a rule header display, positioning a
cursor over the rule header tool bar title button and selecting the
rule header tool bar title button, and viewing a displayed list of
rule headers used in loan compliance assessment. The method may
further comprise displaying a tool bar having selectable tool bar
title buttons, at least one of the selectable tool bar title
buttons for selecting a reports display, positioning a cursor over
the reports tool bar title button for displaying a drop-down menu
having a selection of report types, the selection of report types
including broker license exception, covered loan exception, daily
exception, error exception, fee exception, geocode exception, high
cost exception, Home Mortgage Disclosure Act HMDA exception, lender
license exception, SDS exception, and state rule exception,
designating the report type to be displayed by selecting a report
type for displaying a date window and a customer selection window,
entering a date into the date window and selecting a customer in
the customer selection window, and viewing the displayed designated
report type. The method may further comprise displaying a tool bar
having selectable tool bar title buttons, at least one of the
selectable tool bar title buttons for selecting an administration
display, positioning a cursor over the administration tool bar
title button for displaying a drop-down menu having selections of
user setup and user role setup, designating a user setup to be
displayed by selecting the user setup selection, and viewing the
displayed designated user setup comprising a displayed list of user
full names, user login names, user company names, user roles, and
user status. The method may further comprise displaying a tool bar
having selectable tool bar title buttons, at least one of the
selectable tool bar title buttons for selecting an administration
display, positioning a cursor over the administration tool bar
title button for displaying a drop-down menu having selections of
user setup and user role setup, designating a user role setup to be
displayed by selecting the role setup selection, and viewing the
displayed designated user role setup comprising a displayed list of
user role names and associated descriptions.
BRIEF DESCRIPTION OF DRAWINGS
These and other features, aspects and advantages of the present
invention will become better understood with regard to the
following description, appended claims, and accompanying drawings
wherein:
FIG. 1 shows an automated loan compliance assessment system
environment diagram;
FIG. 2 shows an automated loan compliance assessment system
interconnection diagram;
FIG. 3 shows a client side interface (CSI) diagram;
FIG. 4 shows a server processor (SP) diagram;
FIG. 5 shows an embodiment of a formatted loan file sent from the
CSI to the SP for requesting a compliance assessment;
FIG. 6 shows an embodiment of a result file sent from the SP to the
CSI containing results of a compliance assessment;
FIG. 7 shows a license data processor (LDP) diagram;
FIG. 8 shows a legal rule builder (LRB) diagram;
FIG. 9 shows a customer user interface (CUI) diagram;
FIG. 10 shows an internal user interface (IUI) diagram;
FIG. 11 shows a process audit request (PAR) diagram;
FIG. 12 depicts a screen shot showing a list of jurisdictions where
the system is capable of assessing mortgage loan compliance;
FIG. 13 depicts a screen shot showing a list of agencies in each
jurisdiction that promulgates regulations;
FIG. 14 depicts a screen shot showing a list of acts in each
jurisdiction that contain compliance requirements;
FIG. 15 depicts a screen shot showing a list of license
requirements in each jurisdiction;
FIG. 16 depicts a screen shot showing a list of tag names for
identifying data;
FIG. 17 depicts a screen shot showing a list of rule names for
identifying rules;
FIG. 18 depicts a screen shot showing a list of rule header
names;
FIG. 19A depicts a screen shot showing a data entry screen for
searching for an existing audit by loan number;
FIG. 19B depicts a screen shot showing a data entry screen for
searching for an existing audit using an advanced search;
FIG. 20A depicts reports that may be selected for display;
FIG. 20B illustrates a display for selecting a State Rule Exception
report;
FIG. 21 depicts a screen shot showing a list of users who are
allowed access to the system; and
FIG. 22 depicts a screen shot showing a list of user role
names.
DETAILED DESCRIPTION
Turning now to FIG. 1, FIG. 1 shows an automated loan compliance
assessment system environment diagram 100, including an automated
compliance assessment system 110, customer loan origination system
(LOS) 120, customers users 130, internal users 140 to the entity
operating the automated compliance assessment system 110, legal
experts 150, and regulatory agencies 160. The automated compliance
assessment system 110 comprises an automated system that includes a
process manager, an expert system and databases for reviewing real
estate loans for compliance with applicable requirements. An
automated compliance assessment system 110 interacts with various
groups in order to assure compliance with regulatory requirements.
Regulatory agencies 160 include various Federal, state and local
agencies that provide licensing and licensee data 162 to the system
110. The licensing and licensee data 162 include a compilation of
applicable licenses and active licensees that the system 110
requires for ensuring compliance with licensing requirements. Legal
experts 150 comprise a team of attorneys and compliance specialists
responsible for reviewing and analyzing applicable sources of legal
compliance requirements. They prepare legal interpretations 152 for
entry into the system 110 in terms of plain English rules that
reflect compliance requirements. These legal experts 150 may be
internal and external to the entity operating the automated
compliance assessment system 110. Internal users 140 are personnel
within the entity operating the automated compliance assessment
system 110 that have access to input system data 144 and to output
system data 142 to the system 110 for viewing and modifying results
data, setup data, rules data, supplemental data and license data.
Customer users 130 are customer personnel that have limited access
to the automated compliance assessment system data 132 for viewing
results, rules and license data. A customer loan origination system
(LOS) 120 resides on a secure communication network connection to
the automated compliance assessment system 110 and includes a
database where loan data is stored, accessed and maintained. The
customer LOS 120 may initiate a manual or an automatic request 122
to the automated compliance assessment system 110 via the secure
communication network connection to extract loan data from the
customer LOS 120 and perform a compliance assessment review. A loan
compliance assessment performed by the automated compliance
assessment system 110 may be triggered by a change in status or at
milestones in the workflow of a loan application in the LOS 120. An
assessment may also be triggered by manual intervention by s system
user. For example, underwriting, document preparation, a closing,
etc may trigger a compliance assessment of a loan application file.
The automated compliance assessment system 110 responds to the
service request 122 from the customer LOS 120 by transmitting a
service result message 124 that contains results of the compliance
review performed by the system 110.
Turning to FIG. 2, FIG. 2 shows an automated loan compliance
assessment system interconnection diagram 200. A server processor
400 is connected to a secure communication network 210 for
communication with a client side interface (CSI) 300, a customer
user interface 700 and an internal user interface 800. The client
side interface (CSI) 300 also includes the client LOS. Legal
experts 150 provide plain English rules to a legal rule builder
(LRB) 600, which converts these plain English rules to an XML rules
file for use by the server processor 400. Regulatory agencies 160
provide licensing requirements and license compilations to a
license data processor 500, which provides this license data to the
server processor 400 in the form of an XML file.
Turning to FIG. 3, FIG. 3 shows a client side interface (CSI)
diagram 300, which enables a client LOS to communicate with a
server processor via a secure communication network 210. The CSI
300 runs at a customer location and uses a secure communication
network 210, which may be the Internet, a telephone communication
network, a satellite communication network, a cable network, a
microwave communication network, a radio communication network, a
wireless telephone communication network, etc., to communicate with
a server processor. The CSI 300 extracts data from the customer's
LOS system and formats it as an XML document, which is then
encrypted, compressed and transmitted to a server processor via the
secure communication network 210. A manual service request 362 may
be initiated by a user via the LOS user interface 360 or may be
automatically generated by the CSI 300. This request starts the
process audit request 350, which extracts loan data 342 from a LOS
database 340, converts the loan data 342 to an XML file and sends a
formatted file 352 to a client manager 320. The loan data 342
extracted from the LOS database 340 contains unique loan
information about a particular piece of collateral, lien position
and loan program that is stored and maintained in the LOS database.
When the client manager 320, which is a messaging component that
resides in the CSI 300 to track outbound formatted files 314 and
inbound result files 312, receives the formatted file 352 from the
process audit request 350, it transmits the formatted loan file 314
to a server processor via the secure communication network 210. An
embodiment of a formatted loan file 314 is depicted in FIG. 5. As a
result of this audit request, the client manager 320 receives a
result file 312 from the server processor, which it sends as a
result file 322 to a process audit results function 330. The result
file 322 is a loan data file that has been reviewed by the server
processor, and has those results appended to the file. An
embodiment of a result file 312 is depicted in FIG. 6. The process
audit results function 330 extracts, parses and transmits the
parsed results 332 portion of the result file 322 to the LOS
database 340. When the LOS database 340 receives the parsed results
332 of a compliance review request, the parsed results are stored
in the LOS database 340 and the service results 364 are forwarded
to the LOS user interface 360 for display.
Turning to FIG. 4, FIG. 4 shows a server processor (SP) diagram
400. The SP 400 receives requests from a CSI and authorizes
transactions based on a security profile. Once authorized, the SP
400 queues the transaction for an audit engine, which perform a
compliance review of the loan data. When a SP 400 receives a
formatted loan file 492 from a CSI via a secure communications
network 210, the formatted loan file 492 is placed in an input
queue 490 to be held until a process manager 410 is able to submit
the formatted loan file 414 to an expert system 470. An embodiment
of a formatted loan file 492 is depicted in FIG. 5. The process
manager 410 verifies the formatted file schema, customer passwords,
and validates the compliance review request. The process manager
410 submits the formatted loan request to the expert system 470
where a rules evaluation 474 is conducted by which files are
reviewed in accordance with applicable rules and regulations. The
expert system 470 is an engine of the automated compliance
assessment system that uses system data 472 to evaluate compliance
and append its response to the formatted file 414 to create a
result file 412. The system data 472 comprises results data 422
stored for future reference in a results archive repository 420,
rules data containing all system rules and supporting documentation
including English rules and legal interpretation references stored
in a rules repository 430, license data stored in a license
repository 440, setup data including various industry tables and
databases that support the compliance review process stored in a
setup data repository 450 and supplemental data containing various
customer specific tables and databases that support the compliance
review process stored in a supplemental data system (SDS)
repository 460. The result file 412 is sent from the process
manager 410 to an output queue 480, where outgoing result files 482
are held until a client manager in a CSI is able to process the
result file 482. An embodiment of a result file 482 is depicted in
FIG. 6. It should be noted that if a compliance assessment does not
find any warnings or negative results of the assessment, no
notification is provided to the user.
Turning to FIG. 5, FIG. 5 shows an embodiment of a formatted loan
file sent from the CSI to the SP for requesting a compliance
assessment. The formatted loan file of FIG. 5 comprises several
major segments of mortgage data, including loan details, fees,
impound fees, borrower information, prepayment penalties, late
fees, proposed housing information, mortgage insurance information,
lender license information, home mortgage disclosure act (HMDA)
information and miscellaneous fees. Loan details are descriptive
information concerning the loan, including amortization term,
annual percentage rate, loan term, property type, sale price,
annual taxes, annual income of applicant, etc. Fees include
settlement/closing fees, title insurance fees, title insurance
binder fees, recording fees, origination fees, appraisal/final
inspection broker fees, broker fees, and processing and
administrative broker fees. Impound fees include escrowed hazard
insurance and escrowed county taxes. Miscellaneous fees include
flood certification fees and tax service contract fees.
Turning to FIG. 6, FIG. 6 shows an embodiment of a result file sent
from the SP to the CSI containing results of a compliance
assessment. As shown in FIG. 6, the first section of the result
file contains the formatted loan file that was received by the SP
from the CSI to initiate a compliance assessment. The compliance
assessment result shown in FIG. 6 is the service response that
includes assessment provider data, customer (lender) data, numerous
audit groups, geographic code data, high cost data and applicable
licenses. The numerous audit groups include validation of broker
license data, validation of customer license data, validation of
fee data, validation of impound data, fee audit, high cost audit
for federal, state and city requirements, broker license audit,
lender license audit, state rules audit, home mortgage disclosure
act (HMDA) requirements audit for geolocator, county and census
tract, loan fees audit and review, and custom business rules.
Turning to FIG. 7, FIG. 7 shows a license data processor (LDP)
diagram 700. The LDP 700 ensures that the licensing data used by
the compliance assessment system has the most current information
for compliance review. Licensing data 162 comprising compilations
of applicable licenses and active licensees is extracted from
regulatory agencies 160 such as Federal, state and local agencies.
A data conversion processor 710 converts the licensing data 162
into a formatted XML converted data file 712, and send it to a
database update processor 720 where database updates 722 are
uploaded to a license repository 440. The database update processor
720 may also access the license repository 440 for license data 724
that may include historical records of licensing data stored in the
license repository 440.
Turning to FIG. 8, FIG. 8 shows a legal rule builder (LRB) diagram
800. The LRB 800 is used to build rules based on statutes,
regulations, ordinances, administrative codes and guides, official
interpretations, court decisions, and other sources of legal
compliance requirements, which may be used to perform compliance
reviews. Legal experts 150 are teams of attorneys and compliance
specialists who are responsible for reviewing and analyzing
statutes, regulations and court decisions for providing legal
interpretation 152 of these references. These legal interpretations
152 are then synthesized and distilled by the build English rule
processor 810 into terms of plain English rules 812 that reflect
compliance requirements. A build system rule processor 820 converts
the plain English rules 812 into system rules 822, which are
computer syntax versions of the plain English rules 812. The system
rules 822 are stored in a rules repository 430.
Turning to FIG. 9, FIG. 9 shows a customer user interface (CUI)
diagram 900. A customer user 910 is user personnel that have
limited access to the compliance assessment system, and may use the
CUI 900 to view results, rules and license data. The customer user
910 may send an inquiry 912 via a secure communications network 210
to a server processor. When the server processor receives a results
data inquiry 912 from a customer user 910 to view results data
containing individual compliance reviews results for a particular
loan, a view results processor 920 accesses the requested results
data 924 from the results archive repository 420 and sends the
result data 922 to the customer user 910 via the secure
communication network 210. When the server processor receives a
rules inquiry 912 from a customer user 910 to view rules data
containing individual system rule information and all supporting
documentation, including English rules and related references to
the legal interpretations, a view rules processor 930 accesses the
requested rules data 934 from the rules repository 430 and sends
the rules data 932 to the customer user 910 via the secure
communication network 210. When the server processor receives a
license inquiry 912 from a customer user 910 to view license data
containing the results of an individual licensee look-up request, a
view license processor 940 accesses the requested license data 944
from the license repository 440 and sends the license data 942 to
the customer user 910 via the secure communication network 210.
Turning to FIG. 10, FIG. 10 shows an internal user interface (IUI)
diagram 1000. Internal users are personnel employed by the entity
that operates the loan compliance assessment system, and who may
access to view results data, setup data, rules data, SDS data and
license data. An internal user 1010 may send an inquiry 1012 via a
secure communications network 210 to a server processor. When the
server processor receives a results data inquiry 1012 from an
internal user 1010 to view results data containing individual
compliance reviews results for a particular loan, a view results
processor 1020 accesses the requested results data 1024 from the
results archive repository 420 and sends the result data 1022 to
the internal user 1010 via the secure communication network 210.
When the server processor receives a rules inquiry 1012 from an
internal user 1010 to view rules data containing individual system
rule information and all supporting documentation, including
English rules and related references to the legal interpretations,
a view rules processor 1030 accesses the requested rules data 1034
from the rules repository 430 and sends the rules data 1032 to the
customer user 1010 via the secure communication network 210. When
the server processor receives a license inquiry 1012 from a
customer user 1010 to view license data containing the results of
an individual licensee look-up request, a view license processor
1040 accesses the requested license data 1044 from the license
repository 440 and sends the license data 1042 to the customer user
1010 via the secure communication network 210. When the server
processor receives an inquiry 1012 from a customer user 1010 to
view setup data containing various industry tables and databases
that support the compliance review process, a view setup data
processor 1050 accesses the requested setup data 1054 from the
setup data repository 450 and sends the setup data 1052 to the
customer user 1010 via the secure communication network 210. When
the server processor receives an SDS data inquiry 1012 from a
customer user 1010 to view SDS data containing various customer
specific tables and databases that support the compliance review
process, a view SDS data processor 1060 accesses the requested SDS
data 1064 from the SDS repository 460 and sends the SDS data 1062
to the customer user 1010 via the secure communication network 210.
The SDS repository 460 may contain data to augment data that may be
missing from a result file.
Turning to FIG. 11, FIG. 11 shows a process audit request (PAR)
diagram 1100. A LOS user 1180, customer personnel that access
mortgage loan data through the customer LOS, may initiate a manual
service request 1184 or an automatic service request 1182. The LOS
user 1180 may initiate a manual service request 1184, while an
automatic service request 1182 is initiated upon the occurrence of
designated conditions during the life cycle of the loan. Automatic
triggers to initiate compliance assessment include a change in
status or a milestone in the loan workflow has been achieved, such
as underwriting, document preparation or loan closing. An automatic
service request 1182 causes the process automatic request function
1140 to initiate a service request 1142 to the process data
extraction function 1120 for performing a process audit. A manual
service request 1184 causes the process manual request function
1150 to also initiate a service request 1152 to the process data
extraction function 1120 for performing a process audit. When the
process data extraction function 1120 receives a service request
1142, 1152, it extracts designated loan data 1112 from the LOS
database 1110 and sends the loan data 1122 to the process data
conversion function 1130. A process data conversion function 1130
converts the loan data 1122 from the LOS database into data 1162
that is compatible with the automated loan compliance assessment
system. A process data formatting function 1160 receives the system
loan codes 1162 from the process data conversion function 1130,
formats the system loan codes 1162 into an XML file 1172, and sends
the formatted XML file 1172 to a client manager 1170. The client
manager 1170 sends the formatted XML file, as shown in FIG. 5, to
the automated loan compliance assessment system via a secure
communication network, as shown in FIG. 3. It should be noted that
if a compliance assessment does not find any warnings or negative
results of the assessment, no notification is provided to the
user.
Turning to FIG. 12, FIG. 12 depicts a screen shot showing a partial
list of jurisdictions where the system is capable of assessing
mortgage loan compliance 1200. A user accesses this display 1200 by
positioning a cursor over the JURISDICTION toolbar title button
1210, which causes a drop-down menu to appear beneath the toolbar
title button that contains a selection DISPLAY JURISDICTION. By
clicking on this selection, the screen shot shown in FIG. 12 may be
displayed that provides the capability of listing all jurisdictions
under the column JURISDICTION NAME 1220. Each jurisdiction under
the JURISDICTION column 1220 may be hyperlinked to additional
information and requirements concerning the selected
jurisdiction.
Turning to FIG. 13, FIG. 13 depicts a screen shot showing a list of
agencies in each jurisdiction that promulgates regulations with
which mortgage loan processes and associated licensed personnel
must comply 1300. A user accesses this display 1300 by positioning
a cursor over the AGENCY toolbar title button 1310, which causes a
drop-down menu to appear beneath the toolbar title button that
contains a selection DISPLAY AGENCY. By clicking on this selection,
the screen shot shown in FIG. 13 may be displayed that provides the
capability of listing all jurisdictions under a JURISDICTION column
1320 and agencies under an AGENCY column 1330. Each agency listing
under the AGENCY column 1330 may be hyperlinked to additional
information and requirements concerning the selected agency.
Turning to FIG. 14, FIG. 14 depicts a screen shot showing a list of
acts in each jurisdiction that contain compliance requirements with
which mortgage loan processes and associated licensed personnel
must comply 1400. A user accesses this display 1400 by positioning
a cursor over the ACT toolbar title button 1410, which causes a
drop-down menu to appear beneath the toolbar title button that
contains a selection DISPLAY ACT. By clicking on this selection,
the screen shot shown in FIG. 14 may be displayed that provides the
capability of listing all jurisdictions under a JURISDICTION column
1420 and associated acts under an ACT NAME column 1430. Each act
listed under the ACT NAME column 1430 may be hyperlinked to
additional information concerning the requirements of the selected
act.
Turning to FIG. 15, FIG. 15 depicts a screen shot showing a list of
license requirements in each jurisdiction for personnel and
entities that process mortgage loan applications 1500. A user
accesses this display 1500 by positioning a cursor over the LICENSE
toolbar title button 1510, which causes a drop-down menu to appear
beneath the toolbar title button that contains a selection DISPLAY
LICENSE. By clicking on this selection, the screen shot shown in
FIG. 15 may be displayed that provides the capability of listing
all jurisdictions under a JURISDICTION column 1520 and required
licenses under a LICENSE column 1530. Each license listed under the
LICENSE column 1530 may be hyperlinked to additional information
concerning the requirements of the selected license.
Turning to FIG. 16, FIG. 16 depicts a screen shot showing a list of
tag names for identifying data that may be required in order to
process mortgage loan applications 1600. A user accesses this
display 1600 by positioning a cursor over the TAG toolbar title
button 1610, which causes a drop-down menu to appear beneath the
toolbar title button that contains a selection DISPLAY TAG. By
clicking on this selection, the screen shot shown in FIG. 16 may be
displayed that provides the capability of listing all tag names
under a TAG NAME column 1620, associated descriptions under a
DESCRIPTION column 1630 and data type under a TYPE column 1640.
Each tag name listed under the TAG NAME column 1620 may be
hyperlinked to additional information concerning the selected tag
name.
Turning to FIG. 17, FIG. 17 depicts a screen shot showing a list of
rule names for identifying rules that may be required in order to
process mortgage loan applications 1700. A user accesses this
display 1700 by positioning a cursor over the RULE toolbar title
button 1710, which causes a drop-down menu to appear beneath the
toolbar title button that contains a selection DISPLAY RULE. By
clicking on this selection, the screen shot shown in FIG. 17 may be
displayed that provides the capability of listing all rule names
under a RULE NAME column 1720. Each rule name listed under the RULE
NAME column 1720 may be hyperlinked to additional information
concerning the selected rule name.
Turning to FIG. 18, FIG. 18 depicts a screen shot showing a list of
rule header names for identifying rule headers that may be required
in order to process mortgage loan applications 1800. A user
accesses this display 1800 by positioning a cursor over the RULE
HEADER toolbar title button 1810, which causes a drop-down menu to
appear beneath the toolbar title button that contains a selection
DISPLAY RULE HEADER. By clicking on this selection, the screen shot
shown in FIG. 18 may be displayed that provides the capability of
listing all rule header names under a RULE HEADER NAME column 1820.
Each rule header name listed under the RULE HEADER NAME column 1820
may be hyperlinked to additional information concerning the
selected rule header name.
Turning to FIG. 19A, FIG. 19A depicts a screen shot showing a data
entry screen for searching for an existing audit by loan number
1900. A user accesses this display 1900 by positioning a cursor
over the AUDIT SEARCH toolbar title button 1910, which causes a
drop-down menu to appear beneath the toolbar title button that
contains a selection SEARCH BY LOAN NUMBER. By clicking on this
selection, the screen shot shown in FIG. 19A may be displayed that
provides the capability searching for an existing by loan number by
entering a loan number 1920 and a customer selection 1930.
Turning to FIG. 19B, FIG. 19B depicts a screen shot showing a data
entry screen for searching for an existing audit using an advanced
search 1950. A user accesses this display 1950 by positioning a
cursor over the AUDIT SEARCH toolbar title button 1910, which
causes a drop-down menu to appear beneath the toolbar title button
that contains a selection ADVANCED SEARCH. By clicking on this
selection, the screen shot shown in FIG. 19B may be displayed that
provides an advanced search by entering a loan number 1955, a
branch selection 1960, an application date 1965, a submit date
1970, a loan status 1975, an audit status selection 1980 or a
customer selection 1985.
Turning to FIG. 20, FIG. 20A depicts reports that may be selected
for display 2000 by positioning a cursor over the REPORTS toolbar
title button 2010. These include the reports Broker License
Exception, Covered Loan Exception, Daily Exception, Error
Exception, Fee Exception, GeoCode Exception, High Cost Exception,
HDMA Exception, Lender License Exception, SDS Exception, and State
Rule Exception. FIG. 20B illustrates a display for selecting a
State Rule Exception report 2050. A user accesses a report by
positioning a cursor over the REPORTS toolbar title button 2010,
which causes a drop-down menu to appear beneath the toolbar title
button that contains the selection of reports 2000 listed in FIG.
20A. By clicking on the STATE RULE EXCEPTION selection 2020, the
screen shot shown in FIG. 20B may be displayed that provides a
means for selecting a State Rule Exception by entering a date 2030
and a customer selection 2040.
Turning to FIG. 21, FIG. 21 depicts a screen shot showing a list of
users who are allowed access to the system 2100. A user accesses
this display 2100 by positioning a cursor over the ADMINISTRATION
toolbar title button 2110, which causes a dropdown menu to appear
beneath the toolbar title button that contains a selection USER
SETUP. By clicking on this selection, the screen shot shown in FIG.
21 may be displayed that provides information for all users of the
compliance assessment system. This information includes user full
name under the USER FULL NAME column 2120, user login name under
the USER NAME column 2130, user company name under the COMPAMY
column 2140, role of user under the USER ROLE column 2150 and user
status under the STATUS column 2160.
Turning to FIG. 22, FIG. 22 depicts a screen shot showing a list of
user role names 2200 that indicate the degree of access to the
system by users having different roles in organizations that use
the system. A user accesses this display 2200 by positioning a
cursor over the ADMINISTRATION toolbar title button 2210, which
causes a drop-down menu to appear beneath the toolbar title button
that contains a selection ROLE SETUP. By clicking on this
selection, the screen shot shown in FIG. 22 may be displayed that
provides information for all user roles defined for the compliance
assessment system. This information includes user role name under
the NAME column 2220 and a description of the degree of access
allowed under the DESCRIPTION column 2230.
There are also many additional features that are incorporated into
the present invention to ensure a user-friendly environment. For
example, a user is able to access system documentation via a user
interface to obtain help with specific questions or issues
regarding operation of the system. The system documentation
function provides the following functionality: A plain language
description of system operation in the application of compliance
requirements for consumer loans; An explanation of the legal
interpretation that provides the basis of system operation; A link
to specific legal compliance requirements sources; and A reporting
function that deals with the compliance functions of each rule or
feature feature in the system.
Checklists may also be available to guide a user through setup
procedures.
Although the present invention has been described in detail with
reference to certain preferred embodiments, it should be apparent
that modifications and adaptations to those embodiments might occur
to persons skilled in the art without departing from the spirit and
scope of the present invention.
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